Key takeaways:
- The Netherlands’ central bank, De Nederlandsche Bank (DNB), fined Crypto.com for running its website unregistered for more than two years.
- In accordance with the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act, cryptocurrency service providers must register.
De Nederlandsche Bank (DNB), the central bank of the Netherlands, fined Crypto[.]com for operating an unregistered website for more than two years.
The fine was imposed in October even though it was declared on March 13. It’s unclear why the transfer was made public now rather than when it was first announced.
On October 23, the DNB fined Foris DAX MT, also operating under the name Crypto[.]com, 2.85 million euros ($3 million) for providing bitcoin services without registering between May 21, 2020, until at least November 8, 2022. On May 21, 2020, the DBN put registration requirements into effect.
In accordance with the Dutch Anti-Money Laundering and Anti-Terrorist Financing Act, cryptocurrency service providers must register.
The DNB stated that although the fine was initially set at 2 million euros, it was enhanced in light of the seriousness of the offense and the extent of culpability.
Being exempt from compliance and regulatory fees gave Crypto[.]com an advantage over its rivals.
DAX MT was not registered throughout the “period of non-compliance,” which prevented Crypto[.]com from reporting suspicious transactions to the Financial Intelligence Unit-Netherlands despite having a “significant number” of customers during that time. On October 9, Crypto[.]com submitted an objection to the DNB judgment.
Crypto[.]com was registered in the Netherlands in July of 2023. In April 2022, the DNB began requiring crypto service providers to register. The company was fined 3.3 million euros ($3.5 million) for operating without registration after sending a warning to Binance in August 2021.
Following an abortive effort at registration, Binance announced that it would cease operations in The Netherlands in June 2022. In the Netherlands, there are presently 41 authorized crypto service providers.
In September 2023, prominent crypto exchange Gemini stated that it would no longer be operating in the Netherlands due to regulatory restrictions enforced by De Nederlandsche Bank (DNB), the country’s central bank. Gemini emailed its members that its services would end on November 17, 2023. This announcement brings the number of cryptocurrency platforms that have stopped operating in the nation to an increasing number.
